Best Buy Financial Analysis
Financial Analysis | Best Buy | FINC 5000 |
Luis G Zapata Jr
12/1/2011
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Abstract Best Buy started in Minnesota in 1966 as Sound of Music, Inc. and began as an audio components retailer, but with the introduction of the videocassette recorder in the early 1980’s it expanded into video products. In 1983 Sound of Music officially changed their name to Best Buy and began using mass-merchandising techniques, which included offering a wide variety of products under a “superstore” concept. In 1989, Best Buy changed their retailing methods by introducing a self-service, noncommissioned, discount-style store designed to give customers a variety of consumer electronics, home office products, entertainment products, appliances and related services. Best Buy like many retailers make their profits on a seasonal basis, it is fact that most of their revenue and earnings happens in the fiscal fourth quarter. Currently Best Buy is a multi-national retailer that operates two reportable segments. The Domestic segment is comprised of all operations within the U.S. and its territories. The International segment is comprised of all operations outside the U.S. and its territories including China, Canada, Mexico and the U.K.
Overview of Domestic Segment Best Buy currently operates in two reportable segments which are domestic and international. The domestic segment compromises not only of Best Buy but also includes Best Buy Mobile, Geek Squad, Magnolia Audio Video, Napster and Pacific Sales. While the international segment consists of operations in Canada, Mexico, Europe, and China with companies such as Connect Pro, The Carphone Warehouse and Five Star. The domestic entities include Magnolia Home Theatre which offers customers a store within-a-store experience with high end electronics and specially trained employees. On the other hand Geek Squad provides repair, support and installation services to customers, while Best Buy Mobile provides a comprehensive
Luis G Zapata Jr
12/1/2011
|
Abstract Best Buy started in Minnesota in 1966 as Sound of Music, Inc. and began as an audio components retailer, but with the introduction of the videocassette recorder in the early 1980’s it expanded into video products. In 1983 Sound of Music officially changed their name to Best Buy and began using mass-merchandising techniques, which included offering a wide variety of products under a “superstore” concept. In 1989, Best Buy changed their retailing methods by introducing a self-service, noncommissioned, discount-style store designed to give customers a variety of consumer electronics, home office products, entertainment products, appliances and related services. Best Buy like many retailers make their profits on a seasonal basis, it is fact that most of their revenue and earnings happens in the fiscal fourth quarter. Currently Best Buy is a multi-national retailer that operates two reportable segments. The Domestic segment is comprised of all operations within the U.S. and its territories. The International segment is comprised of all operations outside the U.S. and its territories including China, Canada, Mexico and the U.K.
Overview of Domestic Segment Best Buy currently operates in two reportable segments which are domestic and international. The domestic segment compromises not only of Best Buy but also includes Best Buy Mobile, Geek Squad, Magnolia Audio Video, Napster and Pacific Sales. While the international segment consists of operations in Canada, Mexico, Europe, and China with companies such as Connect Pro, The Carphone Warehouse and Five Star. The domestic entities include Magnolia Home Theatre which offers customers a store within-a-store experience with high end electronics and specially trained employees. On the other hand Geek Squad provides repair, support and installation services to customers, while Best Buy Mobile provides a comprehensive